MAIR Holdings, Inc. (MAIR) reported a net loss of $2.5 million for the fiscal 2007 second quarter ended September 30, 2006 compared to a net loss of $25.5 million during the same quarter a year ago. It attributed the loss to additional expenses it recorded on Mesaba Aviation's bankruptcy and a $1.2 million net loss at Big Sky Transportation Co.

"The Company's financial results for the second quarter of fiscal 2007 continue to be impacted by the ongoing expenses associated with Mesaba's bankruptcy," said Paul F. Foley, MAIR's president and chief executive officer. "Higher fuel prices and a reduction in passengers during the heightened security at the end of August negatively impacted Big Sky's ability to break even in the quarter. While MAIR continues to explore opportunities to diversify, Mesaba will focus on its bankruptcy restructuring and Big Sky will seek to expand its operations."

MAIR set two goals for Mesaba, decreasing labor and non-labor expenses and confirming a new contract as a Northwest Airlink. Only then, said MAIR, can it develop a successful reorganization plan to exit bankruptcy. It has cut tentative agreements with pilots, flight attenandants and mechanics which are currently in the ratification process.

Big Sky will be growing its Beech 1900 flights as it seeks to expand beyond the Pacific Northwest. It recently began Springfield, Ill.-Chicago Midway service under a revenue guarantee contract with Illinois under the same program Mesa is using to launch Midway service. It is also looking for both EAS and other opportunities and is pursuing a partnership with Chalks International to provide service to the Bahamas.

(1) Fiscal 2007 amounts and fiscal 2006 balance sheet reflect the deconsolidation of Mesaba's financial results effective October 13, 2005.

Source: Mair

Source: Mair